REPUBLIC OF MOZAMBIQUE

Ministry of Public Works,

Housing and Water Resources SEPTEMBER 15, 2021

SUSTAINABLE, RESILIENT AND

INCLUSIVE URBAN WATER
SERVICES IN MOZAMBIQUE
INVESTMENT PROGRAM 2022 - 2032
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REPUBLIC OF MOZAMBIQUE
Ministry of Public Works,
Housing and Water Resources
 INVESTMENT PROGRAM 2022 - 2032

Delivering sustainable, resilient and

inclusive urban water supply services
in Mozambique

In September of 2021 the Government of Mozambique is holding a

institutions and donors the ongoing structural reforms in the urban

water supply sector together with the Capital Investment Programe
(CIP) for 2022-2032. This Plan has the objective to deliver water
supply to 100% of the Mozambican urban population, ensuring a
high quality and continuous water service.

Aware of existing demographic and regional migration trends and

the growing challenges of climate change, the CIP delivers increasing
system resilience to address both issues.

implemented by the Government of Mozambique

4
Nothern Region

2020 Mueda Pemba

Lichinga
2009 Montepuez

2006 Cuamba
Nampula
2004 Chitima Nacala
Moatize Ilha de Moçambique
2000
Tete Mocuba Angoche

Quelimane
Chimoio
Gorongosa Central Region
Manica
Gondola
Dondo

Beira

Maxixe
Chókwé
Inhambane Southern Region
Chibuto

Xai-Xai
Boane
Matola
Maputo
Maputo Metropolitan Area
Country Overview

Mozambique’s economy has expanded rapidly over the last decade with Water resources are also unevenly distributed, with greatest limitations in
annual GDP growth between 5% and 7%. This has slowed down of late, the most developed southern part of the country. Groundwater sources
with the impact of 2 major cyclones (2019) and COVID-19 (2020-2021).
Even with consistent growth for almost 2 decades, Mozambique remains a
Low-Income Country (LIC) with a GNI/head of US$460. With an extensive coastal area currently containing over 60% of the
population and many of the major settlements, as well as major rivers,
Growth and rising living standards have not been evenly spread across the
country, being mainly in urban areas and in the southern part of the
country. The Government still faces the challenge of reducing poverty and droughts.
inequality across regions and provinces.

In 2014, 32% of Mozambican population (22 million) lived in urban areas.

By 2025 this will rise to over 50%.

Current trends indicate that population growth will become more

concentrated into the 12 urban areas, the largest of which are Maputo
(2.5m), Beira (1.0m), Nampula (750,000) and Quelimane (600,000).

Mozambique relies heavily on international water resources. Many of the

larger rivers rise elsewhere and 50% of the water used for supply falls as
rain outside the country.
6 INVESTMENT PROGRAM 2022 - 2032

The Urban Water Sector Regional North. These four divisions cover all
28 major urban areas, and in 2020, served
The challenges in the urban water sector are:

around 4m of the 7m population through

580,000 connections.
The sector framework for delegated
In 2009 AIAS was established to provide rural
management services can be provided on a
and small town water supply and sanitation
services. AIAS operates entirely independently
arrangements can thus vary from area to area,
of FIPAG.
although FIPAG operated most of the urban
water supply schemes in Mozambique.
Water supply coverage varies across the country
even within existing urban areas. There are
FIPAG is a wholly-owned autonomous public
extensive underserved periurban districts. In Building and enhancing competences and skills.
entity founded in 1998. It functions as an asset
2020, the Urban Water Utilities under
holder, fund raiser and lessor.
FIPAG provided water to 64% of the Key Performance Indicators "2020"
population in it's service areas, 51% of which
FIPAG’s operational performance is set and
is connected through domestic connections,
monitored on a 3 yearly cycle through
and 13% through public stand-posts. FIPAG water supply coverage 64%
agreements with the Ministry of Public Works,
2.930
Housing & Water Resources (MOPHRH). AURA
(Headquaters - 99)
(the Water Regulatory Authority) acts as both
2010, doubling in many cases and reaching 24 Total active domestic connections 579.917
service quality/performance and economic
hours in some areas. Annual Produced water (Mm3)) 189.377
regulator.
Water quality also improved although recent
FIPAG has four operating divisions, namely,
cyclone damage to water infrastructure has set
Maputo Metropolitan Area, FIPAG Regional
back progress in this area.
South, FIPAG Regional Centre and FIPAG
 INVESTMENT PROGRAM 2022 - 2032 7

Moving Forward Towards Water Systems in the South, Central & North
Avançandoregions,
em direção
including the aMaputo dos Sistemas de Água nas regiões Sul, Centro e
Metropolitan
Sustainable, Resilient and Area. At the outset FIPAG will holdNorte,
100% incluindo
of the a Área Metropolitana de
um abastecimento de
equity of the 4 utilities. Maputo. No início, o FIPAG deterá 100% do
Inclusive Urban Water capital das 4 concessionárias.
água urbano sustentável,
Supply TARIFFS:
resiliente e inclusivo TARIFAS: Comprometida com uma estrutura
tarifária progressiva, considerando a acessibilidade
REGULATION: Re-structured the regulatory
REGULAÇÃO: Reestruturou a agência reguladora
The Government of Mozambique has set out a
wider sector policy framework and objectives
INVESTMENTS: Developed the CAPITAL
through the Five Year Program and de política
Nationalsetorial mais amplo e objetivos
INVESTMENT PROGRAM 2022-2032 INVESTIMENTOS:
(CIP) to Desenvolveu o PROGRAMA
através do Programa Quinquenal e da
Urban Water Supply & Sanitation Strategy.
develop water supply, increase DE INVESTIMENTO
resilience to DE CAPITAL 2022-2032 (CIP)
Estratégia Nacional de Abastecimento de Água
climate change and reduce the para desenvolver o abastecimento de água,
rehabilitation
The Government of Mozambique has Urbana e Saneamento. O Governo de
set a goal
backlog. aumentar a resiliência às mudanças climáticas e
of 80% urban population coverageMoçambique
with potable estabeleceu uma meta de 80% de reduzir o atraso na reabilitação.
cobertura ofda população urbana com
water supply by 2024 and the achievement
FINANCING: Creation of the enabling
SDG 6 target by 2030. abastecimento de água potável até 2024 e o
FINANCIAMENTO:
conditions to (a) successfully secure funds from Criação das condições
cumprimento da meta do ODS 6 até 2030.
a range of sources (Bilateral andcapacitadoras
Multilateral para (a) garantir com sucesso
To deliver this objective, the Government of fundos de uma variedade de fontes (doadores
donors) to
Mozambique has undertaken the Parafollowing
cumprir este objetivo, o Governo de
commence implementation of parts bilaterais e multilaterais) para iniciar a
of the CIP
reforms: Moçambique empreendeu as seguintes
and (b) attract new partners intoimplementação
the process de partes do CIP e (b) atrair
reformas:
novos parceiros para o processo e novos
CORPORATIZATION: Establishment of 4
funds, local institutions (banks, insurance
CORPORATIZAÇÃO:
Regional Water Utilities for the operation of the Estabelecimento de 4
companies & pension funds). investimento, instituições locais (bancos,
Empresas Regionais de Água para a operação
seguradoras e fundos de pensão).
 8

PRIVATE SECTOR PARTICIPATION: FIPAG plans to delegate operation and

maintainance of the water infrastructures to private operators through PPP
contracts.

It is also envisaged that the regional utilities shares will be opened to the
private sector, with FIPAG selling up to 49% of the capital of each company.

Investment Program Summary 2022-2032

ALL REGIONS TOTAL (Million USD)

RESILIENT INFRASTRUCTURE - WATER SUPPLY $1,628.76

RESILIENT INFRASTRUCTURE - DAM $1,288.97
SUSTAINABLE SERVICES - NRW $124.90
SUSTAINABLE SERVICE - ENERGY EFFICIENCY $24.70
SUSTAINABLE SERVICE - OTHER $0.00
CAPACITY BUILDING $28.17
TOTAL WATER SUPPLY $1,806.53
TOTAL WATER RESOURCES (DAM) $1,288.97

TOTAL $3,095.50

Program delivery needs = US$1.800bn

This is a preliminary conservative value that will be updated

SDG - Sustainable Development Goals

 INVESTMENT PROGRAM 2022 - 2032

Results

Direct Impact Wider Outcomes

100% of the urban Mozambican population
with access to reliable water services,
over 4.5m additional people served by 2030.
Modernized urban water services delivering
Improvements in public health, economic
development and poverty reduction.
Increased social resilience to extreme weather
events.

Improved water services accelerate achievement

of Sustainable Developement Goals by 2030, and
Water (below 30%) and energy consumption. contribute to:

Increased revenues from more customers

and more consumption.

Resilient infrastructure better adapted to SDG 11 (Sustainable cities and commu-nities).

climate change.

Skilled water professionals with specialized

competences.

SDG - Sustainable Development Goals

Risks & Mitigations
Increasing Attractiveness

Political and governance:

Macro-economic:
Capacity:
Security:
Regulation:
with the debt service.

FIPAG summary P&L 2019/20 & forecasts to 2030

Values in US$
2019 2020 2021 2025 2030
(US$=MT57,8)

Revenues 44.16 40,34 46,10 53,81 62,79

Operational
expenses 34,84 32,88 33,56 41,29 52,10

Operating margin 9,33 7,46 12,54 12,52 10,69

Other expenses (25,46) (4,32) 0,00 0,00 0,00

Depreciation & all

interest expenses (3,62) (6,10) (9,74) (9,15) (9,98)

EBIT (20.19) (3.03) 2.80 3.37 0.71

For more information and registration.
conference.fipag. co. mz
Paulo Mavaieie
Paulo Mavaieie Bruno Belchior
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CO-ORGANIZAQ,() / CO-ORGANIZERS

+258 86 863 2545 I +258 82 302 5430 +258 84 29 40 254

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